3. 3
As of today;
38Non Life
2 Reinsurance
4Life
18Life and
Pension
A total of 62 companies
Number of Insurance Companies
4. 4
72%
Foreign players in the market:
• Reflecting the trust into the Turkish market
• Transfering global practices to the local
players
• Enabling policyholders to benefit from
international novelties and developments
Foreign Capital in the Market
Share of foreign capital in total
paid-up capital
Source: Undersecretariat of Treasury, ınsurance and
Private Pension Report 2015
5. 5
Number of employees working
for the insurance companies 19.353
75.000 people
Employed in the
insurance sector
More than
Brokers 119
Loss adjusters 1 305
Agents 15 587
Number of employees
7. 0
2.000
4.000
6.000
8.000
10.000
12.000
2011 2012 2013 2014 2015
1.598 1.506
1.780
1.497 1.380
8.616
9.508
10.920
10.364
9.930
Life
Non-life
7
Written Premiums 2011-15 (million USD)
Overall premium production has increased 80% since 2011
Annual average incrase: 16%.
8. 8
Premium production increases by % 33 in 2016 second quarter compared to the same
period of the previous year.
Written Premiums 2015 Q2-2016 Q2 (million USD)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2015/8 2016/8
945 1,003
6,607
7,962
Life Non life
9. 9
Source: TSB
14.3 15.8 15.4
8.2
37.7
38.9 38.2
19.3
2.8
3.0
3.1
2.7
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2013 2014 2015 2016/6
Million
Traffic Non Life (except traffic) Life
2013 2014 2015 2016/6
Life 2,8 3,0 3,1 2,7
Non Life (except traffic) 37,7 38,9 38,2 19,3
Traffic 14,3 15,8 15,4 8,2
Total 54,8 57,7 56,7 30,2
Number of Insurance Policies
11. 11
Premium Production by Distribution Channel
(2016 Quarter 2)
Center;
8.6%
Agency;
5.7%
Bank;
81.6%
Broker,
4.1%
LIFE
Center
8%
Agency
64%
Bank
13%
Broker
15%
NON LIFE
12. 12
Total Insurance Coverage Provided by the Sector
2010-15
Source: Undersecretariat of Treasury, Insurance and Private Pension Report 2015
In 2015, the sector povides an insurance coverage 44 times of the country’s GDP .(2015
GDP=715 billion USD)
21
23
28
33
35
32
0
5
10
15
20
25
30
35
40
2010 2011 2012 2013 2014 2015
Total Coverage (trillion USD)
14. 14
Profitability
TECHNICAL PROFIT/LOSS (million USD)
BRANCHES 2016-06 2015-06
Traffic -189,8 -477,8
Land Vehicles 94,4 115,3
Fire and Natural Disaster 48,2 31,5
Health -10,9 17,9
General Losses 39,3 35,0
Accident 77,6 77,5
Total Non-life 125,8 -84,1
Life 121,4 115,3
2016 2. quarter
15. 15
2016/Q2
Quarter 2 Technical Profit: 254,4 million USD
Net Profit: 249,3 million USD
Profit in;
Non-life branches: 125,8 million USD
Life branches: 121,4 million USD
Private Pensions: 7,2 million USD
20. 20
Premium Per Capita (USD): An International
Comparison
153
4017
4823
307
1902
142
4096
4358
312
1634
0
1000
2000
3000
4000
5000
6000
Turkey USA UK Asia Europe
2014 2015
21. 21
Penetration Rate: Insurance Premiums/GDP
In 2015, penetration rate of Turkish insurance sector is below the penetration
rate of world average which was 6,2%.
Source: Sigma No3/2016, Sigma no4/2015, Sigma no3/2014, Sigma no3/2013, Sigma no3/2012, Sigma no3/2011
1.3 1.3 1.4 1.5 1.4 1.6
6.9
6.6 6.5 6.3 6.2 6.2
7.5
7.1
6.7 6.8 6.8 6.9
0
1
2
3
4
5
6
7
8
2010 2011 2012 2013 2014 2015
Penetration Rate(%)
Turkey World Europe
22. Private Pension Funds/GNP of OECD Countries % (2014)
Importance of Private Pension Funds in the
Economy
159.3
146.8
120.3
110.0
96.0
84.4
83.0
76.2
68.3
58.1
54.9
51.0
48.6
37.2
30.2
20.0
15.7
11.3
10.6
10.1
9.5
9.3
8.8
8.8
8.0
7.3
6.7
6.7
5.8
5.6
5.5
4.2
4.1
3.2
0.6
0.5
0 20 40 60 80 100 120 140 160
Netherlands
Iceland
Switzerland
Australia
United Kingdom
Weighted average
United States
Canada
Chile
Ireland
Israel
Finland
Denmark
Simple average
Japan
New Zealand
Mexico
Estonia
Slovak Republic
Portugal
Spain
Sweden
Norway
Poland
Czech Republic
Korea
Germany
Italy
Austria
Belgium
Turkey
Slovenia
Hungary
Luxembourg
Greece
France
2.2
37,2
22
Source: OECD, Pension
Markets in Focus, 2015
23. 23
Fırsat Sunan Demografik Yapı / İletişime Açık Genç
Nüfus
• Population 79 milyon
• Urban Population % 92
• Age 0-14 % 24
• Age 15-64 % 67,8
• Age 65+ % 8,2
• Average 31
• Internet Usage % 58
• Ratio of ocial Network Usage % 53
• Cell-phone Usage %90
Demographic Structure
Source: TUIK, 2015
24. 24
Büyük Yatırım Projeleri
• Total value of investments reached to 69
billion USD in Turkey during the last 5 years.
• Huge projects have been financed by banks
and insured by insurance companies of
Turkey ; Projects such as 3rd Bridge, 3rd
Airport, Eurasia Tunel, İzmir-İstanbul
Highway, electrcity production and
distribution privatizations.
Source: Banks Association of Turkey/Statistics of Project Finance/June 2015
Investment Projects
25. 25
KOBİ’lerin Sigortalanması
• SME’s constitute 99,8% of total firms in business
• SMEs accounted for 52,8% of value added generated in the economy by
2013
• SME’s accounted for 63,8% of the turnover, 53,3% of investments and
66,4% of exports (2014)
• 50% of SME’s are uninsured
• SME’s present an important opportunity for insurance sector
Source: TUİK, 2015
Insurance Potential of the SME’s
26. 26
• Insurance and Private Pension Sectors are well regulated industries,
regulated under the ‘ Insurance Law’, ‘Private Pension Savings and
Investment System Law’, and related subordinate legislations. By and
large insurance sector has been operating in line with the EU’ and
international norms and standards
• Works are underway to bring the Turkish Insurance Industry in line with
the Solvency 2 Directive
• Studies continue to update mortality and annuity tables in life insurance
branch
Highly Regulated and Transparent Sector
27. 27
Pazarlamaya Yönelik Fırsatlar
• Digital distribution channels in insurance business have become critical
especially reaching to young generations.
• Providing tailor-made insurance product for customer needs ,
• Focus on the customer satisfaction ,
would contribute to increase the insurance penetration in Turkey.
Opportunities for Marketing
28. 28
SONUÇ
Turkish economy presents opportunities for local and
international insurance companies thanks to its dynamics
and solid legislative infrastructure
As a Result;
32. 32
Reasons for the Loss
MTPL Offers a Wide Insurance Coverage
• MTPL provides coverages for;
• Material damages
• Treatment expenses and
• Permanent disability and deprived of support
Treatment costs are paid by Social Security Instıtution(SGK) after the
change of Traffic Law, No:2918.
33. 33
Percentage of bodily injured claims increased in total claims.
0%
10%
20%
30%
40%
50%
60%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -
Q2
13% 13% 15% 16%
13%
17%
26%
35%
47%
51% 52%
56%
Reasons for the Loss
Percentage of the Bodily Injured claims in Total claims
36. 36
Briefly;
Although Turkey
has been marked by the highest
damage frequency,
in Europe
MTPL Premium charges were the
lowest among other European
countries…
Reasons for the Loss
Turkey vs. EU (2013)
38. 38
Trafik Sigortası
AylartTGöre Ortalama Primler
302
329
360
422
441
466
523
589
611
651
679
683
664
659
613
0
100
200
300
400
500
600
700
800
The Most Popular Question?
39. 39
The Most Popular Question?
IN 2015;
• 1.2 million accidents
• 7.500 people had lost their lives
• 12.000 people had become permanently
incapacitated
• 2.000 people had become reliant on care
• Retroactivity…
Source:TUIK 2015
45. 45
Final Remarks
• Loss trend in MTPL continues. Loss of MTPL reached to 190 million USD in
the 2nd quarter of 2016
• Loss trend causes a risk for sustainability in MTPL branch.
• Court decisions should be in line with the legislation,
• Premium decline trend will go on due to competition. But it will take time
• Free tariff system definitely must continue..
46. 46
Thank you very much
for your patience...
Mehmet Akif Eroğlu
Secretary General
Turkish Insurance Association
akif.eroglu@tsb.org